The spot price of iron ore has gyrated in recent weeks, driven by hopes for more stimulus from Beijing and concerns that the run of soft economic indicators is likely to extend.

Gerdau said it will use the iron ore obtained from the new platform on four steel production units.

Rio intends to invest about $101 million to acquire 100 domestically built ore rail cars over six years.

The investment bank said in a note that it sees persistent problems in Chinese real estate.

Steel production generates up to 9% of global emissions.

It signed a deal with two China-linked companies in June 2021 to construct the railway, despite facing legal action from Australia's Sundance Resources.